If I buy a property in India using funds from my NRE account and sell the property at a later date am I allowed to repatriate all the sale proceeds (principal + appreciation) to UK. Or is it that I am only allowed to transfer the initial investment and not the gain.

I have had conflicting opinion on this. Please advise what the law allows. Even after paying capital gains tax on the profit the remainder cannot be transferred?-- Sohani

The entire amount of sale proceeds net of tax may be repatriated. When you sell the property, depending upon your holding period, you will earn long term or short capital gains.

The net proceeds post tax payment may be remitted abroad. You will need to submit to the Bank a certificate from an Indian Chartered Accountant certifying the fact that the tax payable on the transaction has been provided for.